BitMEX Distributes 1.5m BMEX Tokens on Crypto Token Launch
BitMEX is a P2P trading platform focused on crypto derivatives trading including futures and margin trading. With an emphasis on leveraged trading and derivatives, BitMEX is a platform more suited to experienced traders.
BitMEX Pays $100m in Penalty for Illegal Crypto Operations
Established in 2014, the exchange offers contracts on cryptocurrencies that include but are not limited to Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Tezos (XTZ). Unlike many platforms, the exchange has a Bitcoin base currency and does not support fiat currency deposit and withdrawals.
BitMEX has faced its own controversies in recent times. In the summer of 2021, a U.S Federal Court ordered BitMEX to pay $100m for illegally operating a crypto trading platform. The Court also ruled that BitMEX was in violation of AML laws.
The Commodity Futures Trading Commission (CFTC) had filed action against BitMEX back in October 2020. The CFTC also had found that BitMEX failed to implement appropriate AML, KYC, and Customer-Information-Program (CIP) procedures.
The CFTC Notice from August 2021 did note that BitMEX looked to remedy the issues, by developing an AML and user-verification program.
Marked Shift in Regulatory Landscape
Since the BitMEX fine, the regulatory landscape has materially shifted, with the crypto market facing increased regulatory scrutiny.
Calls by the Bank of England and others for a global crypto regulatory framework have pushed regulators into action. Last week, news hit the wires of the Biden administration affirming the imminent release of an executive action tasking agencies with the regulation of cryptos as a matter of national security. With the Indian government also increasing activity within the crypto space, more is likely to follow. Just yesterday, the Indian government announced a 30% crypto tax.
Amidst the increased scrutiny, however, the crypto market continues to evolve, with exchanges actively marketing their platforms to build brand awareness.
BitMEX Launches BMEX Token and Airdrops $1.5m in BMEX
Amidst heightened regulatory scrutiny, BitMEX airdropped 1.5m of its native cryptocurrency BMEX tokens on Tuesday. BitMEX airdropped BMEX tokens to user wallets based on previous activity on the platform.
Built on the Ethereum blockchain, there is a total supply of 450m tokens minted at once. The tokens are to be vested over a period of up to 5-years. According to the BitMEX Litepaper, BitMEX will use the majority of BMEX to reward users and grow the ecosystem with new partners and products.